It’s stormy once. Given the circumstances, it’s not surprising that the public markets are creaking, with only niche sectors remaining either untouched or marginally positive. Edtech is no exception.
Brighteye Ventures today published its European Educational Technology Funding Half Year Report, built from Dealroom data. The report focuses on investment activity in Europe, but is linked to what we are seeing in other markets.
Global venture capital funding for edtech startups totaled $6.5 billion in H1 2022, up from $20.1 billion raised in 2021. This decline in global funding can be partly explained by fewer edtech megarounds (over $100M) in H1 2022 compared to prior periods. .
There were 16 so-called megarounds in the first half of 2022, compared to 24 in the second half of 2021 and 30 in the first half of 2021. million, fell fairly consistently from the peak in the first half of 2018.
We expect the European edtech market to retain some positive signs of resilience, but naturally the ecosystem cannot be immune to the headwinds it faces.
Note that this does not necessarily reflect lower activity in the ecosystem – it simply means that angels are making earlier trades through participation in incubators and accelerators, which are not fully reflected in the data.
We were pleased to see that the European edtech ecosystem has managed to maintain much of its momentum, at least for now. The fact that the sector received $1.4 billion in 2022, up 40% from a year earlier, demonstrates its ability to sustain growth even under difficult conditions.
This is not surprising given the inverse correlation between deteriorating macro employment markets and appetite for education, especially in the post-18 education market.
Credit: techcrunch.com /